The IRS issued guidance preventing a “double tax benefit”

Sources tell FOX Business’ Charlie Gasparino the SEC is asking independent advisories to disclose PPP loans to the Commission and even to clients.

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Employers who have their Paycheck Protection Program loans forgiven will be ineligible for tax deductions on expenses paid for through the loan, the IRS announced on Thursday.

The tax agency released guidance clarifying that otherwise deductible business expenses, like salaries, will not be deductible if they were paid for by a forgiven PPP loan – thereby preventing a “double tax benefit.”

PPP loans are largely expected to be allocated toward payroll expenses (75 percent), but the remaining 25 percent can be put toward rent, mortgage interest, utilities and interest on other debt obligations.

Recipients are eligible for complete forgiveness if they keep staffing numbers – and salaries – consistent, if loan allocation specifications are met and if the funds are used within an eight week window. Forgiveness is prorated if not all conditions are fully met.